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You can buy or sell the New Zealand dollar (NZD) spot at US$0.6832 per NZD. If U.S. annual interest rates are 2% and the New
You can buy or sell the New Zealand dollar (NZD) spot at US$0.6832 per NZD. If U.S. annual interest rates are 2% and the New Zealand annual interest rates are 4%, what must be the approximate one-year forward rate (US$/NZD) if interest rate parity holds?
0.6916
0.6820
0.6701
0.7000
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